Help More Students Find Their Place at UNCW
Help the university attract promising students, reduce financial barriers and provide more Seahawks with the opportunity to learn, lead and discover what comes next.
Every scholarship represents more than financial assistance. It is an investment in a student’s potential and in everything they may accomplish because someone believed in their future.
Endowment Reporting
The Division for University Advancement, in collaboration with the Division for Business Affairs, is responsible for providing and distributing an annual report of the university's endowments.
For questions, please contact:
Missy Kennedy '01
Associate Vice Chancellor
(910) 962.2049
kennedym@uncw.edu
Prior reports:
2024-25 Endowment Report
2023-24 Endowment Report
2022-23 Endowment Report (pdf)
2021-22 Endowment Report (pdf)
Book Value:
The dollar amount of the original endowment gifts donated, plus any additional gifts, and any gains (losses) realized upon liquidation of non-cash endowment gifts.
Market Value:
The market value as of June 30 of the individual endowment gifts, invested in the pooled endowment fund, allocated to the individual account based on the number of units held. Market value includes both realized and unrealized investment appreciation.
New Gifts:
Gifts made to an endowment or spendable fund during reporting period.
Spending Distribution from Endowment:
The portion of endowment investment appreciation that is withdrawn to fund the operating budget and expand in accordance with the endowments' designated purposes.
"Underwater" Endowment:
An endowed fund whose market value is less than its historic gift value.
Earned Income:
Income that is earned from investments, such as dividends from stock and interest from money market and/or bonds.
Realized capital gains/losses:
These are incurred when an asset is sold. A realized capital gain results from selling an asset at a price higher than the original purchase price. A realized capital loss results from selling an asset at a price lower than the original purchase price.
Unrealized capital gains/losses:
The change in value of an investment after it is purchased but before it is sold.
Total Return:
The percentage change in value over a period of time, taking into account net income and capital appreciation (depreciation). This would include interest and dividends, realized gains (losses), unrealized gain (losses) and investment management costs.
What are endowment funds?
The university’s endowment funds consist of both true endowments and quasi-endowments, also known as “funds functioning as endowments.” True endowments are made up of gifts received from donors with the stipulation that the principal remain untouched and that it be invested to produce a never-ending source of support for the purposes specified by the donors. Quasi-endowments are funds set aside by the university to function as endowments over the long term but which may be fully expended, with the approval of the Board of Trustees, to meet the needs of the university.
Endowment funds are invested for the long term, and a portion of earnings from those investments help support the purposes for which they were established: student scholarships, academic programs, professorships, and other university needs.
What is endowment principal?
Principal is defined by UNCW as total donor gifts to a true endowment. The terms principal and corpus are sometimes used interchangeably.
What is the difference between market value and book value?
The difference between book value and market value is unrealized appreciation (if market value is more than book value) or depreciation (if market value is less than book value).
What legal requirements regulate endowments in North Carolina?
In March, 2009, North Carolina adopted the Uniform Prudent Management of Institutional Funds Act (UPMIFA). This act replaces the previous guidance (UMIFA) adopted in 1985. (See Chapter 36E of the NC General Statutes) Unlike UMIFA, UPMIFA does not prohibit invasion of the endowment principal, but instead applies a prudence standard for investment and spending decisions.
UNCW has adopted a policy that takes the position that implementing the flexibility afforded by UPMIFA should be an option of last resort. If exercised, such spending shall not cause the principal to fall below 85% of the historic gift value of the subject endowment fund.
How large is UNCW’s endowment?
As of June 30, 2026, UNCW's endowment comprised 655 endowed funds and was valued at $259 million.
How is endowment spending determined?
Spending policy rate is approved by the Board of Trustees of the University. The 4.5% spending policy rate is computed on the average endowment market value at the end of the previous 3 years. This rate helps insulate the endowment from anticipated market volatility, including lower investment returns and higher inflation. It also helps to ensure continued, steady support of student scholarships, and academic and university programs.
How soon will new endowments start to spend?
New endowments may begin spending after accumulated investment earnings are sufficient to fund the spending budget, subject to the annual computation date for endowment spending budgets of the previous June 30. It typically takes 18 months before a new endowment can begin to spend.
How does stock market volatility affect the endowment?
Stock market values go up and down. The university manages stock market volatility by maintaining a diversified portfolio, which includes equities, fixed income, private equity, venture capital, real estate, marketable alternatives and other investments. However, diversification alone will not prevent the endowment from sustaining losses during market downturns.
UNCW endowment’s spending rate helps to insulate the spending budget from short-term fluctuations in the financial markets by using a conservative spending rate formula. The university’s endowment spending rate helps to smooth out the impact of volatile capital markets by providing for annual distributions of 4.5 percent of the average market values of endowment units over the past three years. The approach helps the university budget more consistently for its revenue streams.
Why not increase the rate of spending from endowment earnings when state funding is cut or growing slowly?
The current endowment spending rate is set to protect and grow the value of the endowment for the future, because it must continue to grow over time to preserve the quality and health of the university. If an institution were to spend down its endowment for unplanned expenses, it would take many years to build the endowment back up through investment income, reduced spending and new gifts.